The aroma ingredients market is projected to grow from USD 2.27 billion in 2018 to USD 2.83 billion by 2023, at a CAGR of 4.5% during the forecast period.

The rising demand for personal care products, coupled with changes in lifestyles and consumer preferences are expected to drive the growth of the market for aroma ingredients across the globe. However, the requirement of significant investments in R&D and stringent governmental regulations regarding the use of aroma ingredients in personal care product formulations are hampering market growth.

The demand for synthetic ingredients is very high in various applications due to low cost and easy availability. Moreover, synthetic ingredients are consistent in quality and price, unlike natural ingredients. Hence there is high demand in the aroma ingredients market for products for the personal care industry.

The toiletries application of the aroma ingredients market is expected to register the highest CAGR in terms of value between 2018 and 2023. Increasing purchasing power of middle-class populations is leading to growth in demand for soaps, shampoos, conditioners, and hygiene products in emerging countries, which in turn, is fueling growth of the aroma ingredients in the toiletries application.

The APAC aroma ingredients market is projected to grow at the highest CAGR, in terms of value between 2018 and 2023. Economic growth in emerging countries and increasing disposable incomes of the middle-class populations of the APAC region are making it an attractive market for manufacturers of aroma ingredients.

Increasing awareness among masses regarding skin, hair, and oral care, changing lifestyles of the middle-class populations of the region due to their growing disposable incomes, and increasing popularity of organic skin care products are some of the major factors expected to fuel the growth of the APAC aroma ingredients market during the forecast period.